Mangalam, JK Cement preferred picks among midcap cement stocks: Mayuresh Joshi

In a chat with ET Now, Mayuresh Joshi – VP, Institution, Angel Broking, shares his view on midcap cement space.

ET Now: Anything on the radar? Anything that investors should keep an eye on?

Mayuresh Joshi: We like midcap cement pack. Among the midcap cement stocks, we prefer Mangalam Cement. Among others, JK Cement is something that we would prefer on declines. The company has a product mix of grey and white cements.

The margins in the white cement margins are much higher than that of grey cement's. It has a captive power capacity of around 140 mw. The valuations are not too steep at the current juncture.

Overall, midcap cement companies, probably in terms of their installed capacity, and given the likely realisation levels they may show on report cards this quarter, look good. In general, there are expectations of demand coming back. The volumes are likely to pickup pace over the next few quarters. In addition,, utilisation levels are all set to improve; there may also be improvement in return ratios. Hence, midcap cement as a theme is what we like and JK Cement and Mangalam are our preferred picks.